Contractor General Liability After a Non-Renewal or Decline in California: Where to Go Next

Yes, a California contractor who was non-renewed or declined can usually still buy general liability, but often from a different kind of market. Admitted contractor programs such as RLI Contrac Pac and CNA's Best Choice write small and mid-sized trade contractors, and surplus lines programs such as Brivado (through BTIS) and Blitz take trades, sizes and histories the admitted programs don't, with $1 million per occurrence and $2 million aggregate limits and minimum premiums from $500.^[1]^[2]^[10]^[3] Start as soon as the notice arrives. For the commercial policies Insurance Code section 678.1 covers, the insurer must send a non-renewal at least 60 days before the policy ends, with the reasons.^[4]

This guide is for a California contractor holding a non-renewal notice, a cancellation or a string of declines. It covers what the notice must tell you, how the reason points to the right market, which programs write hard-to-place contractors, which trades we place by hand, and what to send so a new insurer can quote quickly. When you're ready, start the contractor general liability application and pick your trade.

Key takeaways

You get notice and a reason. For the commercial policies it covers, Insurance Code section 678.1 requires written non-renewal notice 60 to 120 days before the end of the term, stating the reasons, to you and your broker.^[4]
Declines open the surplus lines market. A broker can place you with a non-admitted insurer after a diligent search of admitted insurers. Three admitted declinations are evidence of that search.^[5]
Some programs take a lapse or no prior insurance. BTIS's contractor marketplace asks about lapses of 1–59 or 60+ days and no prior insurance, and it accepts new ventures.^[6]^[7]
Hard trades have a home. Brivado writes excavation, grading, tree service, welding and pool work, with receipts up to $15 million.^[1] Roofing, tree service, excavation and welding go to specialty programs we submit by hand.^[8]
Minimums are published. Blitz's contractor GL starts at $500 plus taxes and fees ($750 for a package), and Brivado's minimum starts at $500 and varies by class, with 25% earned at the start.^[3]^[1]

What does a non-renewal notice have to tell me in California?

For the commercial policies it covers, California Insurance Code section 678.1 requires the insurer to deliver or mail a written notice of non-renewal "and the reasons for the nonrenewal" to the named insured and the producer of record at least 60 days, and no more than 120 days, before the policy period ends.^[4] There are exceptions, for example when the insurer offers to renew on changed terms, when you have already replaced the coverage, or for policies of 60 days or less.^[4]

The reason is the most useful thing in the notice. Keep it and send it to your broker, because it tells a new insurer what to look at, and hiding it only causes a problem later.

Why do contractors get non-renewed or declined?

Usually for one of a handful of reasons, and each points to a different market:

Reason	What it means to a new insurer	Where to look
Your trade	The insurer stopped writing your class, or never wrote it	A program that lists your trade, such as Brivado for excavation, tree service or welding^[1]
Your size	Receipts or payroll outgrew the program	RLI's limit is $4M receipts for a GC and $3M for a trade contractor. Brivado and Blitz go to $15M^[2]^[1]^[3]
New residential construction	Too many new homes, condos or townhomes	RLI excludes condo and townhome projects. Brivado and Blitz cap new homes at 25 a year outside construction-defect states^[2]^[1]^[3]
Working as a paper GC	Subcontracting everything without supervising	RLI declines true paper contractors. Brivado and Blitz accept them^[9]^[1]^[3]
Uninsured subcontractors	Their work is rated as your payroll	Collect certificates. RLI rates uninsured subs as employees^[9]
Claims	Frequency or a large loss	Surplus lines programs price claims history. Have loss runs ready
A lapse	Days or months without coverage	BTIS's marketplace takes lapse and no-prior-insurance answers^[6]

Which insurers write contractors other carriers declined?

These are the contractor programs available to Menlo in California. Admitted programs come first when you qualify, because a surplus lines placement needs a diligent search of the admitted market.^[5]

Program	Admitted?	Who it takes	Limits	Minimum premium
RLI Contrac Pac	Admitted, AM Best A+^[2]	GCs on site daily up to $4M receipts. Trades up to $3M. New ventures with 3 years' experience (not plumbers)^[2]	GL with blanket AI, primary and non-contributory and waiver of subrogation available^[2]	Not published
CNA Best Choice (through BTIS)	Admitted, A rated^[10]	Small artisan contractors and new ventures, up to $1.5M receipts, subs up to $100,000 or 25% of receipts^[10]	$1M/$2M/$2M. Blanket AI, waiver and primary/non-contributory included^[10]	Not published
Brivado (through BTIS)	Non-admitted, A XV^[1]	Hard-to-place and high-revenue trades up to $15M receipts, payroll up to $3M, paper GCs, new ventures with 2 years' trade experience^[1]	$1M/$2M/$2M, $1,000 deductible. Blanket AI (CG 20 38) and waiver included^[1]	From $500, varies by class. 25% minimum earned^[1]
Blitz Contractors	Non-admitted^[3]	GCs including paper GCs, artisans. Payroll up to $3M, sales up to $15M^[3]	Up to $1M/$2M. Blanket AI, primary/non-contributory and waiver at no charge^[3]	Monoline GL from $500. Package from $750, plus taxes and fees^[3]

BTIS's contractor marketplace sends one application to several of its programs, admitted and non-admitted, with limits up to $2M/$4M/$4M and optional tool coverage and faulty workmanship coverage.^[7] Its application's experience question starts at two years in the trade.^[6]

What if my trade is roofing, tree work, excavation or welding?

Those go by hand. Our online contractor application covers the common trades, and roofing, tree service, excavation and welding are submitted to specialty programs directly.^[8] Brivado, for example, lists excavation, grading, tree service and welding among its eligible classes with no gross receipts threshold.^[1] Choose "Another trade" on the application or contact us with a short description of the work, and include the notice or decline letter.

Do I need general liability to keep my California contractor license?

It depends on how the license is held. A contractor licensed as a limited liability company must carry liability insurance of at least $1 million in the aggregate for five or fewer people on the personnel of record, plus $100,000 for each additional person, up to $5 million.^[11] So for an LLC licensee, a non-renewal is a licensing problem as well as a contract problem. Replace the coverage before the old policy ends.

What should I send to get a new quote fast?

The notice and the reason
The non-renewal or cancellation notice, or the decline emails, with the reason each insurer gave.
Loss runs
Five years of loss runs from every insurer, even with no claims. Our guide on how to read loss runs explains what the new insurer will look at.
Your numbers
Gross receipts, employee payroll and subcontractor costs for the last year and the next, plus years in the trade and in business.^[6]
Your work
The share of residential, commercial and new construction work, number of new homes a year, and any work over three stories.
What your contracts require
The limits, additional insured forms, waiver of subrogation and primary wording your customers ask for. Our guide to additional insured endorsements explains the forms.

Then open the contractor general liability application. General liability doesn't cover your own workers or tools. See our guides to contractors equipment insurance and workers' comp exemptions in California.

Frequently asked questions

How much notice does an insurer have to give before non-renewing my contractor GL?

At least 60 days and no more than 120 days before the policy ends, in writing and with the reasons, for the commercial policies covered by Insurance Code section 678.1.^[4]

Can I get general liability after a lapse in coverage?

Often, yes. BTIS's contractor marketplace takes lapses of 1–59 days, 60 or more days, and no prior insurance as answers, and new ventures are accepted.^[6]^[7]

Is surplus lines insurance good enough for my contracts?

It can meet the limits and endorsements most contracts ask for, and several surplus lines programs include blanket additional insured and waiver of subrogation.^[1]^[3] Non-admitted insurers are not backed by the California Insurance Guarantee Association, so check whether your contract requires an admitted insurer.

What is the cheapest general liability for a hard-to-place contractor?

The published floors are $500 for Blitz monoline GL and from $500 for Brivado, varying by class, plus taxes and fees.^[3]^[1] Your price depends on trade, receipts, payroll, subcontracting and claims.

This guide is for educational purposes and summarizes California law and carrier program sheets dated 2024–2026. Programs, eligibility and prices change, and your policy's terms control. Menlo Insurance Services (CA license 6020106) is a licensed broker that may earn a commission on a placement and does not guarantee that any coverage or price will be available. Non-admitted insurers are not backed by the California Insurance Guarantee Association.

The Bottom Line

A non-renewal or a decline narrows the market, but it doesn't close it. Read the reason on the notice, which California law requires for covered commercial policies, and send it with your loss runs and numbers.^[4] Admitted programs like RLI Contrac Pac and CNA Best Choice come first when you fit them. After admitted declines, surplus lines programs like Brivado and Blitz write hard trades, larger contractors, paper GCs and new ventures, from about $500 minimum premium.^[2]^[10]^[5]^[1]^[3] Roofing, tree service, excavation and welding are placed by hand, so contact us early.^[8]